1. Community Choice Aggregation Update

2. Electricity in Santa Monica Today
Santa Monica’s Electric Load
48,000 residential accounts
9-10,000 commercial accounts
Represents ~20% of total GHG
Annual Load – 900,000 MWh
Gross revenue value – $55M

3. What is Community Choice Aggregation?
CCA (CCE) allows local governments to purchase and sell electricity to customers in their jurisdictions instead of investor owned utility (IOU) power procurement.

4. Why Community Choice Aggregation?
Allows for communities to have a higher percentage of renewables at potentially lower cost
Sourcing electricity from renewable sources is an essential strategy for reducing emissions and reaching carbon neutrality

5. Background Jan 30, 2015 June 20, 2016 Sept 27, 2016 Oct/Dec 2016
Council adopts a non-binding resolution to join South Bay Clean Power feasibility study
SBCP approaches LA County to take the lead in financing the feasibility study for a countywide CCA.
June 20, 2016
LA County publishes the feasibility study in the form of a Business Plan.
Sept 27, 2016
LACBOS authorizes LAC CEO to engage stakeholders, determine governance structure and begin negotiations with eligible and interested cities.
Oct/Dec 2016
SBCP and LA County hold stakeholder meetings to update members on the process
Interested cities are invited to participate in JPA ‘negotiations’ starting Jan 2017

6. LA County Business Plan findings
The Business Plan determined that a CCA is feasible and could yield in cost- savings for residential and commercial electricity customers.
Rate Class
SCE Bundled Rate
LACCE 50% Green Bundled Rate
LACCE 100% Green Bundled Rate
Residential
17.1
16.4
18.2
Small Commercial
16.6
15.9
17.7
Large Commercial
15.8
15.2
16.9
Industrial
14.5
13.9
15.5
Total LACCE Rate Savings
4.1%
(6.3%)
Rate with 50% renewable energy could be 4% lower than the SCE base rate of 28% renewables. Rate with 100% renewable energy could be only 6% higher than SCE’s base rate.
Emissions could be reduced by 7% at a 50% renewable content and 14% at a 100% renewable content.
LAC could support local and regional energy projects, creating local jobs.
The County and cities would have choices for retail and program offerings.

7. CCA Options for Santa Monica
Engage the Los Angeles Community Choice Energy program, and participate in Joint Powers Authority formation
Engage the South Bay Clean Power sub regional CCA program, and participate in Joint Powers Authority formation
Explore initiating a CCA as a single-city entity, and contract services for initiation from Lancaster Choice Energy, or a private third party.

8. Los Angeles Community Choice Energy (LACCE)
City would enter a JPA with County and other interested LA County cities and establish a regional CCA
Each participating city would be represented with a seat on the JPA Board of Directors
LACCE would issue a Request for Services that includes all CCA funding and development costs with no cost to any individual city
Voting: one city-one vote; Weighted Voting (proposed): electric load

9. South Bay Clean Power (SBCP)
City would form a JPA with other interested South Bay & Westside cities and establish a sub-regional CCA
Each participating city would be represented with a seat on the JPA Board of Directors
SBCP would issue a Request for Services that includes all CCA funding and development costs with no cost to any individual city
Voting: one city-one vote; Weighted Voting (proposed): electric load

10. Lancaster Choice Energy (LCE)
Pay LCE $77,000 for its services
Produce load forecasting, data analysis, and pro-forma development based on the City’s energy data
Prepare an Ordinance of Intent to Form a CCA and Implementation Plan Document for the City
Once the CCA is operating, the City would pay a monthly fee for LCE services
Council would set rates, determine renewable mix, set policy and program elements, do outreach & marketing, and maintain local governance oversight
City would be free to use any revenue from the program for any purpose

11. Private Third Party Service Providers
The City hire a third party service provider to develop and implement a CCA
Service provider would conduct a feasibility study, develop a business plan, and initiate CCA services on behalf of the City, with no startup costs

12. LACCE
SBCP
Lancaster
3rd Party
Start-Up
Form JPA
Hire staff
Contract services
$77,000
Feasibility study
Business plan
Governance
Boardmember
City Council/Staff
Administration
JPA
Lancaster/City Staff
City Staff/Contractor
Benefits
-No upfront cost
-Purchasing power
-Interest/Influence
-Timing/Speed
-Centralized utility
-Revenue to City
Disadvantages
-No revenue
-Upfront cost
-Ongoing fee
-Admin/Finance
-Steep learning curve

13. Proposed CCA Resolution
Goals:
Eliminate carbon emissions
Achieve high rate of cost-competitive renewables
Increase energy services, local solar, EV charging and clean technologies
Objectives:
Implement/participate in a CCA with similar goals and objectives
Achieve high level of participation in the community
Ensure voting representation reflects energy achievements, or population, instead of total electrical load
Ensure a sustainable and equitable source of funds to support local projects
Ensure that all Santa Monicans will have equitable and affordable access to clean energy and energy services

14. Recommended Actions
Provide direction to staff to pursue one or more Community Choice Aggregation (CCA) implementation pathways: opt to join either the LA County or the South Bay Clean Power JPA, explore initiating a CCA on its own, or choose not to participate in a CCA; and
Adopt a resolution that establishes a platform of goals and objectives for negotiation and appoints one Council representative, one staff liaison and one staff alternate to formally participate in Community Choice Aggregation Joint Powers Authority negotiations.

15. Thank you